EQUINOR ASA-SPON ADR (EQNR)
US29446M1027 - ADR
Overall EQNR gets a fundamental rating of 5 out of 10. We evaluated EQNR against 204 industry peers in the Oil, Gas & Consumable Fuels industry. While EQNR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. EQNR is valued quite cheap, but it does not seem to be growing. These ratings could make EQNR a good candidate for value investing.
1. Profitability
1.1 Basic Checks
EQNR had positive earnings in the past year.
In the past year EQNR had a positive cash flow from operations.
EQNR had positive earnings in 4 of the past 5 years.
EQNR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.18%, EQNR is doing good in the industry, outperforming 62.56% of the companies in the same industry.
Looking at the Return On Equity, with a value of 22.05%, EQNR is in the better half of the industry, outperforming 75.37% of the companies in the same industry.
The Return On Invested Capital of EQNR (25.71%) is better than 96.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EQNR is significantly above the industry average of 22.54%.
The 3 year average ROIC (34.03%) for EQNR is well above the current ROIC(25.71%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 22.05% | ||
| ROIC | 25.71% |
ROA(3y)10.76%
ROA(5y)5.89%
ROE(3y)33.24%
ROE(5y)17.59%
ROIC(3y)34.03%
ROIC(5y)23.28%
1.3 Margins
EQNR has a Profit Margin of 9.14%. This is in the lower half of the industry: EQNR underperforms 60.10% of its industry peers.
In the last couple of years the Profit Margin of EQNR has grown nicely.
EQNR has a Operating Margin of 31.11%. This is in the better half of the industry: EQNR outperforms 64.04% of its industry peers.
EQNR's Operating Margin has improved in the last couple of years.
The Gross Margin of EQNR (52.39%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of EQNR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.11% | ||
| PM (TTM) | 9.14% | ||
| GM | 52.39% |
OM growth 3Y64.3%
OM growth 5Y6.9%
PM growth 3YN/A
PM growth 5Y3.01%
GM growth 3Y0.48%
GM growth 5Y1.5%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EQNR is creating value.
EQNR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for EQNR has been reduced compared to 5 years ago.
The debt/assets ratio for EQNR is higher compared to a year ago.
2.2 Solvency
EQNR has an Altman-Z score of 2.75. This is not the best score and indicates that EQNR is in the grey zone with still only limited risk for bankruptcy at the moment.
EQNR has a Altman-Z score of 2.75. This is in the better half of the industry: EQNR outperforms 70.44% of its industry peers.
EQNR has a debt to FCF ratio of 4.35. This is a neutral value as EQNR would need 4.35 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.35, EQNR is doing good in the industry, outperforming 62.07% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that EQNR is somewhat dependend on debt financing.
EQNR's Debt to Equity ratio of 0.53 is in line compared to the rest of the industry. EQNR outperforms 45.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 4.35 | ||
| Altman-Z | 2.75 |
ROIC/WACC4.02
WACC6.39%
2.3 Liquidity
EQNR has a Current Ratio of 1.53. This is a normal value and indicates that EQNR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.53, EQNR is in the better half of the industry, outperforming 64.53% of the companies in the same industry.
EQNR has a Quick Ratio of 1.43. This is a normal value and indicates that EQNR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.43, EQNR is in the better half of the industry, outperforming 67.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The earnings per share for EQNR have decreased strongly by -30.00% in the last year.
EQNR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.15% yearly.
Looking at the last year, EQNR shows a very negative growth in Revenue. The Revenue has decreased by -28.29% in the last year.
EQNR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.35% yearly.
EPS 1Y (TTM)-30%
EPS 3Y130.07%
EPS 5Y11.15%
EPS Q2Q%-14.13%
Revenue 1Y (TTM)-28.29%
Revenue growth 3Y32.67%
Revenue growth 5Y6.35%
Sales Q2Q%-1.94%
3.2 Future
Based on estimates for the next years, EQNR will show a decrease in Earnings Per Share. The EPS will decrease by -5.12% on average per year.
EQNR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.10% yearly.
EPS Next Y-1.06%
EPS Next 2Y-2.66%
EPS Next 3Y-2.07%
EPS Next 5Y-5.12%
Revenue Next Year-3.63%
Revenue Next 2Y-5.53%
Revenue Next 3Y-4.68%
Revenue Next 5Y-7.1%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.30 indicates a rather cheap valuation of EQNR.
Compared to the rest of the industry, the Price/Earnings ratio of EQNR indicates a somewhat cheap valuation: EQNR is cheaper than 76.35% of the companies listed in the same industry.
EQNR is valuated cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.28, the valuation of EQNR can be described as very cheap.
77.34% of the companies in the same industry are more expensive than EQNR, based on the Price/Forward Earnings ratio.
EQNR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 7.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQNR is valued cheaply inside the industry as 99.01% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EQNR is valued a bit cheaper than 70.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.97 | ||
| EV/EBITDA | 1.04 |
4.3 Compensation for Growth
The decent profitability rating of EQNR may justify a higher PE ratio.
A cheap valuation may be justified as EQNR's earnings are expected to decrease with -2.07% in the coming years.
PEG (NY)N/A
PEG (5Y)0.65
EPS Next 2Y-2.66%
EPS Next 3Y-2.07%
5. Dividend
5.1 Amount
EQNR has a Yearly Dividend Yield of 5.90%, which is a nice return.
EQNR's Dividend Yield is a higher than the industry average which is at 6.45.
Compared to an average S&P500 Dividend Yield of 2.23, EQNR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.9% |
5.2 History
On average, the dividend of EQNR grows each year by 34.90%, which is quite nice.
EQNR has paid a dividend for at least 10 years, which is a reliable track record.
EQNR has decreased its dividend in the last 3 years.
Dividend Growth(5Y)34.9%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
EQNR pays out 104.28% of its income as dividend. This is not a sustainable payout ratio.
EQNR's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP104.28%
EPS Next 2Y-2.66%
EPS Next 3Y-2.07%
EQUINOR ASA-SPON ADR
NYSE:EQNR (11/22/2024, 10:33:02 AM)
24.44
-0.45 (-1.81%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap67.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.9% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 7.28 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.18% | ||
| ROE | 22.05% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.11% | ||
| PM (TTM) | 9.14% | ||
| GM | 52.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-30%
EPS 3Y130.07%
EPS 5Y
EPS Q2Q%
EPS Next Y-1.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-28.29%
Revenue growth 3Y32.67%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y